Business Structures - Assignment Example

Business Structures Business Structures Part The different forms of business structure include the sole proprietorshipform that involves one individual in business; the individual makes all the decisions in the business (Nkwocha, 2014). The partnership on the other hand is one that involves different people in business together, while the trust form of business is one that involves imposing obligations on a trustee to hold property on behalf of the beneficiaries while the company structure is a complex form of structure that has a separate legal entity (Nkwocha, 2014).

Part 2 One of the major advantages of the sole proprietorship form of structure is that the individual enjoys decision making and being an own boss while the demerit may involve the business not having enough capital to operate (Nkwocha, 2014). On the part of partnership business forms, the major advantage is that it is not expensive to set up while a major demerit involves sharing of losses with other partners regardless of the situation. Trust form of business is very expensive to start as well as operate.

However, this form of business guarantees protection of the assets in question. The company enjoys limited liability but incurs higher costs for setting up (Nkwocha, 2014). Part 3 Prior to choosing a form of ownership, an entrepreneur should consider factors such as the amount of capital required, ownership and control of the business, license and the volume of work (Nkwocha, 2014).Part 4 Some of the laws that might need to be considered when determining a business structure include licensing laws that explain on tax registration and license, the disclosure agreement laws that touch in confidentiality matters and even zoning laws that involve the location of business (Steingold, 2015).

ReferencesNkwocha, K. (2014). How to Start a Business with Little or No Cash. Redhill: Mithra Publishing.Steingold, F. (2015). Legal Guide for Starting & Running a Small Business. NY: Nolo.